Tesla holds nearly 48% of the US electric vehicle market, dominating the segment despite increasing competition. Globally, Tesla’s market share is around 16% in the EV market, leading all manufacturers.
In 2023, Tesla delivered 1.8 million vehicles, a record-high number. The Tesla Model Y became the world’s best-selling car overall, including gasoline-powered vehicles, with over 1.2 million units sold.
As of the first quarter of 2024, Tesla had about 1.8 million vehicles equipped with Full Self-Driving (FSD) hardware and software, and about half of those are using FSD. Tesla’s FSD has accumulated more than 9 billion miles of real-world driving data. [1]
This early lead of Tesla in the EV market has spurred competitors to innovate aggressively. Companies like BYD and traditional automakers transitioning to EVs are challenging Tesla’s dominance with comparable or specialized offerings.
We present the top Tesla competitors that challenge the EV giant with innovative technology, competitive pricing, and strong market presence. These competitors highlight market trends and help gauge which technologies (e.g., battery efficiency and software systems) are gaining traction.
Did you know?
In 2022, BYD overtook Tesla to become the world’s largest EV manufacturer. Both companies experienced significant growth in EV sales that year. While Tesla grew its EV sales by 672% year over year, BYD expanded by an astonishing 1,881%. [2]
Table of Contents
14. VinFast
Founded: 2017Annual EV Sales: 54,000+
Annual Revenue: $511.6 million+
Competitive Edge: Lower production costs and battery subscription model
VinFast is a part of the Vietnamese conglomerate Vingroup. It is Vietnam’s first domestic car manufacturer with a strong focus on EVs. The company emphasizes a subscription-based battery leasing model to reduce customers’ upfront costs.
They manufacture EVs, e-scooters, and buses. The flagship models like the VF 8 and VF 9 SUVs target premium segments. VinFast competes on cost — the VF 8 and VF 9 models are priced substantially lower than Tesla’s Model Y and Model X, targeting value-conscious buyers. Its battery subscription model further enhances affordability.
The company is experiencing rapid growth, delivering over 51,000 EVs in 2024 (as of November), a significant increase from the 34,855 vehicles delivered in 2023. Adding to its achievements, VinFast was recognized by Time Magazine in 2024 as one of the world’s 100 most influential companies. [3]
13. Rivian
Annual EV Sales: 46,000+
Annual Revenue: $4.43 billion+
Competitive Edge: Uses recycled materials in vehicle interiors
Rivian focuses on adventure-oriented EVs, including its R1T pickup truck and R1S SUV. These vehicles are built to support off-road performance, while emphasizing sustainability with features like vegan leather interiors and advanced battery technology.
Rivian has secured a high-profile partnership with Amazon, which also happens to be Rivian’s largest investor, with a 16.7% stake in the company. Both are working together to bring 100,000 electric delivery vehicles onto the road by 2030.
In 2024, Rivian received a $6.6 billion conditional loan from the US Department of Energy to boost its manufacturing capabilities, including its upcoming plant in Georgia.
The company sold 46,416 EVs in 2023, marking an impressive 147% growth compared to the previous year. Rivian aims to scale its production capacity to 150,000 units annually by 2025, with a long-term goal of reaching 215,000 units as it rolls out its R2 platform. [4]
12. Xpeng
Annual EV Sales: 141,600+
Annual Revenue: $5.31 billion+
Competitive Edge: XPILOT offers features like autonomous parking and highway driving assistance.
Xpeng is emerging as a major competitor to Tesla, especially in China and Europe, with its blend of smart technology, affordability, and market-specific strategies. Their vehicles are more affordable than Tesla’s, with models like the P7 sedan priced around $35,000, significantly undercutting the Tesla Model 3 in China.
In FY 2024, the company invested approximately $757 million in research and development, with nearly $483 million allocated specifically to AI initiatives, including computing power and software development. These investments are expected to grow steadily in the coming year, accounting for a substantial portion of the company’s R&D budget. [5]
While Xpeng is gradually expanding into Europe, it remains focused on its home market, where it has a price and policy advantage. In 2024, the company reached a significant milestone, delivering 500,000 EVs globally.
11. NIO
Founded: 2014Annual EV Sales: 210,000+
Annual Revenue: $8.85 billion+
Competitive Edge: Battery-swapping technology
NIO offers family-oriented SUVs with advanced smart-driving features. It stands out in China’s EV market due to its focus on Extended-Range Electric Vehicles (EREVs), which combine electric power with gasoline range extenders to address range anxiety.
The company leverages a battery-as-a-service (BaaS) subscription model, allowing customers to swap batteries instead of recharging them. It operates over 2,500 battery swap stations globally. This reduces upfront costs and offers flexibility. Plus, they emphasize direct-to-consumer sales and after-sales services through its NIO House and NIO Space facilities. [6]
In 2023, NIO delivered 160,038 vehicles, marking a 30.7% increase compared to 2022. The company also reported annual revenue of $7.84 billion, up from $7.25 billion in the previous year. By October 2024, NIO’s cumulative deliveries had reached an impressive 619,851 units.
10. Li Auto
Annual EV Sales: 470,000+
Annual Revenue: $19.92 billion+
Competitive Edge: Family-focused design
Li Auto emphasizes a direct-to-consumer approach, including online sales and branded stores. It targets family-oriented buyers with spacious, high-tech vehicles equipped for long-distance travel. Its popular models, such as Li L7, L8, and L9, come with advanced driver-assistance systems and luxurious interiors.
Li Auto offers competitive pricing compared to Tesla’s models. For instance, the Li L9 SUV, priced at approximately $70,000, competes directly with Tesla’s Model Y and Model X, providing a larger interior and hybrid technology.
As of 2024, the company operated 497 retail stores across 148 cities in China and maintained 614 supercharging stations with 2,726 charging stalls. In 2023, it delivered 376,030 vehicles, an impressive 182.2% increase from 2022. [7]
Currently, the company has a maximum production capacity of 26,000 units per month, which they plan to increase to 30,000 units per month with production line upgrades.
9. Polestar
Founded: 2017Annual BEV Sales: 54,600+
Annual Revenue: $2.38 billion
Competitive Edge: Volvo and Geely backing
Polestar, a Swedish electric vehicle manufacturer, focuses exclusively on designing and manufacturing premium EVs. It operates a direct-to-consumer model supported by Polestar Spaces (showrooms) and emphasizes minimalist Scandinavian design. Plus, it integrates a fully digital purchasing process and over-the-air updates.
Both Tesla and Polestar are exclusively electric. While Tesla has a more extensive lineup, Polestar is steadily growing with models like Polestar 2, Polestar 3, and Polestar 4. The Polestar 2 sedan, starting at $5,000, competes with Tesla’s Model 3.
With Geely and Volvo holding significant stakes in Polestar (24% and 18%, respectively), the company benefits from Volvo’s engineering expertise and Geely’s financial backing. This support allows Polestar to utilize proven platforms and robust supply chains.
In 2023, Polestar sold 54,626 EVs worldwide, a 6% increase from the previous year. Of these, 10,432 units were sold in the United States, representing a substantial 49.89% increase from 2022. However, in FY 2023, Polestar’s revenue fell slightly to $2.38 billion, down 3% from $2.45 billion in 2022, due to higher discounts and reduced sales of carbon credits. [8][9]
8. Toyota
Founded: 1937Annual BEV Sales: 100,000+
Annual Revenue: $312.28 billion+
Competitive Edge: Hybrid Leadership
Toyota operates as a diversified automobile manufacturer, focusing on a mix of internal combustion engine vehicles, hybrids, plug-in hybrids, and electric vehicles. The company is a pioneer in hybrid technology, with the Prius being a flagship model. They have sold over 20 million hybrid vehicles since the Prius debuted in 1997.
Toyota’s 11.23 million vehicles sold in 2023 dwarfs Tesla’s 1.8 million deliveries. However, Tesla dominates the fully electric vehicle market, where Toyota is still catching up. In 2023, Toyota sold 104,018 Battery Electric Vehicles (BEVs), up 325% from 2022. Despite this growth, all-electric models accounted for only 0.9% of Toyota’s total sales.
The company is heavily investing in R&D, allocating over 8 billion annually toward advanced technologies like EVs, hydrogen fuel cells, and autonomous driving. It plans to achieve carbon neutrality by 2050 and aims to sell 3.5 million EVs annually by 2030. [10][11]
7. BMW
Founded: 1916Annual EV Sales: 376,000+
Annual Revenue: $162.84 billion+
Competitive Edge: Heritage and brand appeal
BMW has become a global leader in luxury vehicles and electric mobility. Unlike Tesla, which is fully committed to EVs, BMW takes a transitional approach, offering hybrids and plug-in hybrids alongside fully electric models.
The company’s “BMW i” sub-brand focuses on electric mobility, with models like the i4 and iX gaining traction in global markets. Their best-selling EV models include
- BMW iX3: An all-electric SUV focused on efficiency and comfort,
- BMW i4: a sporty electric sedan competing with the Tesla Model 3), and
- BMW i7: A premium luxury EV catering to high-end customers
In 2023, they delivered 376,183 fully electric vehicles (BEVs), a staggering 74.4% increase from the previous year. This represented 15% of BMW’s total sales in 2023. During the first three quarters of 2024, the company sold an additional 294,054 BEVs, continuing its strong momentum in the electric vehicle market. [12]
6. Mercedes-Benz
Founded: 1926Annual BEV Sales: 150,000+
Annual Revenue: $161.20 billion+
Competitive Edge: Brand legacy
Mercedes-Benz’s history dates back to Karl Benz’s creation of the first gasoline-powered car in 1886. Today, the company produces ICE vehicles, hybrids, and fully electric vehicles under the EQ sub-brand. The EQS sedan and EQB SUV are among its flagship electric offerings, highly praised for their performance and luxury.
Mercedes-Benz leads in areas like autonomous driving (Drive Pilot), AI-assisted infotainment (MBUX), and safety features. It operates in nearly every country, with localized production facilities and a strong dealership network. In contrast, Tesla’s operations are more concentrated in North America, Europe, and China, though expanding rapidly.
In 2023, Mercedes-Benz sold 43,202 electric vehicles in the US, a 248% increase from 2022. EVs make up 15% of the company’s total passenger vehicle sales that year. Looking forward, the company aims to achieve carbon-neutral fleet by 2039. [13][14]
5. Hyundai Motor Group
Annual BEV Sales: 268,700+
Annual Revenue: $127.81 billion+
Competitive Edge: Hydrogen fuel cell vehicles
The Hyundai Motor Group, comprising Hyundai, Kia, and Genesis, offers a versatile lineup ranging from budget-friendly cars to premium luxury vehicles. The group has made significant strides in the EV market with models like the Hyundai Ioniq series and Kia EV6, which directly compete with Tesla’s Model 3 and Model Y.
Unlike other automakers, Hyundai has invested in hydrogen technology in a number of ways. For instance, in 2021, the group committed $1.1 billion to build two plants for producing hydrogen fuel cell stacks, with a planned annual capacity of 100,000 units. That same year, it invested $7.4 billion to expand the hydrogen ecosystem in the United States. [15]
In 2023, Hyundai Motor sold 268,785 EVs, a 37.2% increase from 2022. Their global sales of electrified models, including EVs and hybrids, reached 695,382 units. Looking ahead, the company has set an ambitious target to achieve annual EV sales of 2 million units by 2030. [16]
4. General Motors
Founded: 1908Annual BEV Sales: 150,000+
Annual Revenue: $161.20 billion+
Competitive Edge: Proprietary Ultium battery technology
General Motors (GM) offers a diverse portfolio of vehicles through its brands Chevrolet, GMC, Cadillac, and Buick, catering to a wide spectrum of consumers. The company is heavily investing in electric and autonomous vehicle technologies, producing EVs ranging from the budget-friendly Chevrolet Equinox EV to the luxurious Cadillac LYRIQ and the powerful GMC HUMMER EV.
A key differentiator for GM is its proprietary Ultium battery platform, featuring a modular design with interchangeable drive units, battery modules, and power electronics. Plus, GM has invested over $8 billion in autonomous vehicle technology through its subsidiary, Cruise.
By October 2024, GM had sold its 300,000th EV in the US and surpassed 370,000 EV sales in North America. This achievement positioned GM as the second-largest EV seller in the US during the third quarter of 2024. Looking ahead, GM aims to transition entirely to electric vehicles by 2035 and achieve carbon neutrality by 2040. [17][18]
3. Ford
Founded: 1903Annual EV Sales: 72,600+
Annual Revenue: $182.74 billion+
Competitive Edge: Strong Truck Lineup
Ford’s business model focuses on mass-market and premium vehicles, with an emphasis on trucks, SUVs, and EVs. The company is transitioning toward electrification and mobility services, leveraging its legacy expertise and investing heavily in battery technology and connected vehicle ecosystems.
Ford’s competitive edge lies in its diverse offerings, from rugged trucks like the F-Series to innovative EVs and luxury Lincoln models. It leads the US commercial vehicle market with nearly 40% share in Class 1-7 commercial trucks and vans, while also leveraging connected technologies through 620,000 active Ford Pro Intelligence software subscriptions. [19]
Although Tesla is a leader in battery efficiency and autonomous driving capabilities, Ford is closing the gap with vehicles like the Mustang Mach-E. However, its BlueCruise driver-assist technology trails Tesla’s Autopilot in functionality and adoption.
In 2023, Ford sold 72,608 EVs, an 18% increase from 2022. This growth was driven by popular models such as the F-150 Lightning, America’s best-selling electric truck, the Mustang Mach-E, and the E-Transit van. During the first three quarters of 2024, Ford delivered 67,689 EVs, up 45% year-over-year. [20]
2. Volkswagen Group
Annual BEV Sales: 771,100+
Annual Revenue: $354.86 billion+
Competitive Edge: Modular electric drive matrix platform
Volkswagen Group operates as a global automotive powerhouse with an extensive brand portfolio, including Volkswagen, Audi, Porsche, Bentley, Lamborghini, SEAT, Škoda, and Bugatti. It leverages economies of scale, advanced manufacturing techniques, and an annual R&D budget exceeding $8 billion to maintain a competitive edge.
The company is at the forefront of electrification with its innovative modular electric drive matrix (MEB) platform, a versatile vehicle architecture specifically designed for electric cars. This platform underpins a wide range of EVs, including SUVs, compact cars, small vehicles, and minibusses, showcasing its adaptability.
In 2023, the Volkswagen Group delivered 771,100 battery-electric vehicles (BEVs) globally, marking a 34.7% growth compared to 2022. BEVs accounted for 8.3% of the company’s total deliveries, up from 6.9% in the previous year. The company is on an ambitious trajectory, planning to launch over 70 new EV models and aiming for annual EV sales of 4 million (in China) by 2030. [21][22]
1. BYD
Founded: 2003BYD celebrated its 30th anniversary with the roll-off of its 10 millionth NEV, marking a significant milestone in sustainable automotive innovation.
Chairman and President Mr. Wang Chuanfu reflected on BYD’s journey and commitment to technological advancement, emphasizing its… pic.twitter.com/4PvXF8Tare
— BYD (@BYDCompany) November 18, 2024
Annual EV Sales: 3,024,417 (including hybrids)
Annual Revenue: $95.71 billion+
Competitive Edge: LFP Battery Leadership
BYD (Build Your Dreams) is a Chinese leader in electric vehicles (EVs) and plug-in hybrids (PHEVs), rapidly expanding its footprint in the global market. Its vertically integrated business model encompasses the entire EV ecosystem, from battery production to vehicle manufacturing. Renowned for its expertise in battery technology, BYD excels in lithium iron phosphate (LFP) batteries, which power its vehicles and are also supplied to other automakers.
While Tesla focuses exclusively on battery-electric vehicles (BEVs), BYD diversifies with both PHEVs and BEVs. The company’s Blade Battery and Tesla’s 4680 battery highlight contrasting strategies in energy density, safety, and innovation.
In 2023, BYD’s 3.02 million new energy vehicle sales outnumbered Tesla’s 1.8 million EV deliveries, reflecting its dominance in China and growing global presence. Plug-in hybrids have significantly contributed to BYD’s growth, with models like BYD Qin L and Seal 06 achieving extended ranges over 2,000 kilometers. [23]
That year, BYD invested nearly $5.5 billion in research and development, marking a 97.39% increase from 2022. The funding supported innovations like “Cell To Body” integration, the Blade Battery, and the DiLink 4.0 (5G). [24]
Looking forward, BYD plans to establish production facilities in Hungary, Turkey, Brazil, and Thailand. By 2030, the company aims to solidify its position as a leading EV manufacturer in Europe.
Read More
- 13 Largest Battery Manufacturers In The World
- Tesla SWOT Analysis [Detailed View]
- 17 Top Chinese Electric Car Brands
- Tesla Vehicle Safety Report, Miles driven per one accident, Tesla
- José Pontes, BYD #1 in the world in plug-in vehicle sales, CleanTechnica
- News, Vinfast secures top market position in Vietnam, Vinfast
- Mark Phelan, EV maker Rivian stuns observers with three new, less expensive SUVs, Detroit Free Press
- Business, Chinese EV maker Xpeng to break even later next year, Reuters
- Denis Bobylev, Nio surpassed 2,500 battery swap stations milestone, CarNewsChina
- Press Release, Li Auto announces unaudited Q4 and 2023 financial results, Li Auto
- Press Release, Polestar publishes full year 2023 results, Polestar
- Business, Polestar reports decline in 2023 revenue as EV maker grapples with slowing demand, Reuters
- Vehicles & Road Traffic, Toyota Motor Corporation’s R&D expenses, Statista
- Hans Greimel, The cost-saving plan to make 3.5 million EVs, Automotive News
- Press Release, BMW posts significant BEV growth in challenging market conditions, BMW Group
- Financial Report, Q4 2023 sales up 2% from Q4 2022 with 90,014 vehicles sold, Mercedes-Benz
- Sustainability, Mercedes-Benz AG is a founding member of “Transform to Net Zero,” Mercedes-Benz
- Ralph Jennings, Inside Hyundai’s $7.4 billion US investment, Forbes
- Maria Merano, Hyundai’s 2030 targets, Teslarati
- News, GM surges past 300,000 EVs sold in the US, General Motors
- Paul Eisenstein, GM to go all-electric by 2035, phase out gas and diesel engines, NBC News
- News, Growing electric, hybrid, truck sales back Q3 gains, Ford
- News, Ford US sales rise 7.1% to nearly 2 million vehicles in 2023, Ford
- Vehicles & Road Traffic, Deliveries of battery electric vehicles by the Volkswagen Group, Statista
- Press Release, Volkswagen takes the offensive in China, Volkswagen Group
- News, BYD concludes 2023 with record 3 million annual sales, BYD
- Vehicles & Road Traffic, BYD Group’s research and development expenses, Statista
